Ashtead Group Plc (LSE:AHT) expects full-year results to be "slightly ahead" of previous projections after growth in the past quarter was bolstered by US$1.7bn of capital investment across existing locations and US$938m on 19 bolt-on acquisitions across North America over the past nine months.
The FTSE 100-listed equipment rental group reported pre-tax profit of US$392.6mln for the quarter ended January 31, up 38% on a year earlier, as revenue rose 23% to US$2bn.
Nine-month revenues were up 19% at US$5.88bn, with earnings of US$1.28bn were up 38%.
According to the company, capital expenditures for the full year are expected to be around US$2.5bn, slightly ahead of its previous guidance, while the acquisitions added 81 locations in North America.
Chief executive Brendan Horgan said the company is seeing strong momentum across its business, and that the significant investment in capital and acquisitions "takes advantage of the ongoing structural growth opportunity that we continue to see in the business".
"Looking forward to 2022/23, our initial plans are for gross capital expenditure of US$3.2bn to US$3.4bn, as we look to take advantage of strong market conditions, particularly in the US. This should enable low to mid-teens rental revenue growth in the US."